Various group purchasing methods are well known in the art. For example, a group may agree in advance to purchase a particular single item as a gift for a family member, coworker, etc. and to divide the eventual cost among the members of the group. In many instances, a lead member of the group will make the purchase, pay for the item in full, and then subsequently seek cash reimbursement of a portion of the cost from the other members of the group. Any failure of a group member to pay his or her portion of the cost is typically borne by the lead member of the group, since the purchase has already been completed, and paid for, by the lead member.
By way of further example, in advance of any purchase, cash contributions may be sought for application toward purchase of a specific item. However, if the total amount of contributions is less than the purchase price of the item, the purchase cannot be completed. The realization that the purchase cannot be completed may occur at such a time that it is then inconvenient or impossible to obtain a substitute item in a timely fashion, e.g. for presentation as a retirement gift to a co-worker at a retirement party.
Further, any approach in which one or more buyers agree with a merchant to purchase an item from the merchant only on a conditional basis, e.g. provided that sufficient funds can be raised, is unsatisfactory to the merchant because of the high degree of uncertainty with respect to eventual completion of the sale transaction, which can complicate the merchant's inventory management, sales projections, etc.